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The hidden costs of Bitcoin mining

20 Aug The hidden costs of Bitcoin mining

Posted at 14:29h in Bitcoin News by

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Since 2009, Bitcoin mining has grown into a massive operation involving data centres packed with computer processors and racking up massive electric bills

Mining Bitcoin is an expensive business, mainly due to the extremely large electricity bill the process can ramp up and the pricey hardware involved.

Bitcoin mining works by using powerful computers (known as nodes) to validate transactions by solving complex mathematical puzzles to find a solution that matches a specific number provided by a grouping, or ‘block’, of transactions which are then linked with other solved blocks to form a block-chain.

However, this isn’t as easy as it sounds as the number can be anything between 0 and 4,294,967,296 and cannot be predicted, so computers must keep guessing at random until they get lucky; the more processing power a node has, the luckier it will be against its competitors.

Once a node guesses the correct number, it is rewarded with 12.5 Bitcoins, currently worth around…

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